The GamesIndustry.biz portal published material about investors’ attitudes to the current situation in the game industry. We chose the main thing.

The current problems are related to the COVID-19 years. Then, the industry spent a lot of money on new studios, hiring employees, and developing games that did not justify themselves. But by 2023, the world economy was in crisis, so investors began to be much more careful about what to allocate money for.

The journalists’ interlocutors say that now there is probably one of the most challenging periods in the game industry’s history. This is reflected in mass layoffs, project cancelations, and studio closures.

The effects of COVID-19, the recession, inflation, and high-interest rates have all come together. All this has led to a macroeconomic situation where investors and publishers are very cautious.

It used to be that a reliable team with a great idea could get money for a game, but now investors are asking a lot of additional questions. For example, do the authors have something to show already? They also ask if the developers have a fanbase that likes the concept of the future game.

Eliana Oikawa, chief operating officer of the Wings Foundation
  • Even big companies are affected by the crisis: for example, investors follow the situation of Team17 and Devolver. However, they recognize that the latter will likely cope with the difficulties.
  • Investors are now concerned with two main issues: whether the company can break into the market with its product and gain a foothold.
  • Among gaming startups, investors say those who save money and communicate with the community to make changes to the project are more likely to succeed. The ones who need to worry the most are those who make games that are marginally different from other titles in terms of quality.
  • However, investors believe that the game industry’s future is still bright. According to them, interest in gaming is now at the highest level, and the field is working with more talented people than ever before.
  • Developers are advised to make sure they can make more money than they spend. According to investors, the industry’s situation may improve by 2025.
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